37466 Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules

DEPARTMENT OF EDUCATION

34 CFR Part 304

RIN 1820–AB46

Special Education—Personnel

Preparation To Improve Services and

Results for Children with Disabilities

AGENCY: Office of Special Education and

Rehabilitative Services of Special

Education Services, Department of

Education.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Secretary proposes to

establish regulations governing specific

provisions of the Personnel Preparation

Program to Improve Services and

Results for Children with Disabilities.

The regulations are needed to

implement recently enacted changes to

the Individuals with Disabilities

Education Act (IDEA or the Act) that

were adopted as part of the IDEA

Amendments of 1997. Specifically, the

regulations would establish procedures

to implement section 673(h) of IDEA

which requires that individuals who

receive a scholarship through personnel

preparation projects funded under the

Act must subsequently provide special

education and related services to

children with disabilities (or, for

leadership personnel, work in areas

related to their preparation) for a period

of two years for every year for which

assistance was received. Scholarship

recipients who do not satisfy their

service obligation must repay all or part

of the cost of their assistance in

accordance with regulations issued by

the Secretary. These proposed

regulations would implement

requirements governing, among other

things, the service obligation for

scholars, oversight by grantees,

repayment (or ‘‘payback’’) of

scholarship, and procedures for

obtaining deferrals or exemptions from

service or repayment obligations.

DATES: Comments must be received by

the Department on or before September

8, 1998.

ADDRESSES: All comments concerning

these proposed regulations should be

addressed to Sherron Dunmore, U.S.

Department of Education, 600

Independence Avenue, SW., Room

4628, Switzer Building, Washington, DC

20202–2641. Comments may also be

sent through the Internet:

comments@ed.gov

You must include the term ‘‘payback’’

in the subject line of your electronic

message.

Comments that concern information

collection requirements must be sent to

the Office of Management and Budget at

the address listed in the Paperwork

Reduction Act section of this preamble.

A copy of those comments may also be

sent to the Department representative

named in this section.

FOR FURTHER INFORMATION CONTACT:

Renee Bradley, U.S. Department of

Education, 600 Independence Avenue,

Washington, DC 20202–2641.

Telephone: (202) 358–2849. Individuals

who use a telecommunications device

for the deaf (TDD) may call the TDD

number at (202) 205–9374 between 8

a.m. and 8 p.m., Eastern time, Monday

through Friday.

Individuals with disabilities may

obtain this document in an alternate

format (e.g., Braille, large print,

audiotape, or computer diskette) on

request to the contact person listed in

the preceding paragraph.

Invitation To Comment

Interested persons are invited to

submit comments and recommendations

regarding these proposed regulations.

All comments submitted in response to

these proposed regulations will be

available for public inspection, during

and after the comment period, in Room

3070, Mary E. Switzer Building, 330 C

Street SW, Washington DC, between the

hours of 8:30 a.m. and 4:00 p.m.,

Eastern time, Monday through Friday of

each week except Federal holidays.

On request the Department supplies

an appropriate aid, such as a reader or

print magnifier, to an individual with a

disability who needs assistance to

review the comments or other

documents in the public rulemaking

docket for these proposed regulations.

An individual with a disability who

wants to schedule an appointment for

this type of aid may call (202) 205–8113

or (202) 260–9895. An individual who

uses a TDD may call the Federal

Information Relay Service at 1–800–

877–8339, between 8 a.m. and 8 p.m.,

Eastern time, Monday through Friday.

To assist the Department in

complying with the specific

requirements of Executive Order 12866

and its overall requirement of reducing

regulatory burden, the Secretary invites

comments on whether there may be

further opportunities to reduce any

regulatory burdens found in these

proposed regulations.

SUPPLEMENTARY INFORMATION: IDEA

personnel training grants are intended

to increase the number and quality of

personnel available to provide special

education and related services to

children with disabilities, to provide

early intervention services to infants

and toddlers with disabilities, and their

families, and to serve in leadership

positions in special education, related,

or early intervention services. Shortages

in school districts across the country of

qualified personnel who can address the

educational needs of children with

disabilities are well documented. In the

past, however, some individuals who

received financial support through IDEA

in order to obtain degrees or other types

of certification subsequently entered

careers in which they did not focus on

serving children with disabilities under

IDEA.

Section 673(h) of the Act was adopted

as part of the IDEA Amendments of

1997 as a means of ensuring that

individuals who receive scholarships

under IDEA-supported personnel

training projects provide special

education or related services to children

with disabilities under Part B of the Act

or early intervention services to infants

and toddlers with disabilities, and their

families, under Part C of the Act.

Similarly, individuals who receive

scholarships under IDEA training

projects for leadership personnel must

work in an area related to their

preparation. Scholarship recipients who

choose not to enter the special

education, related service, or early

intervention field are obligated to pay

back their scholarship so that IDEA

personnel training monies may be

preserved for purposes of increasing the

availability of individuals qualified to

provide services under IDEA.

Subpart A—General

As stated in proposed § 304.1,

individuals who receive scholarship

assistance from projects funded under

the Personnel Preparation to Improve

Services and Results for Children with

Disabilities Program (program) are

required to complete a service

obligation, or repay all or part of the

costs of such assistance. The service

requirement included in the proposed

regulations would apply to individuals

who receive scholarship assistance from

a funded project. Under the proposed

regulations, scholarships could be

awarded only to individuals pursuing

degrees, licenses, certifications, or

endorsements related to special

education, related services, or early

intervention services. An individual

who receives training under an IDEAfunded personnel preparation project,

but does not receive a scholarship from

that project, would not be subject to the

service obligation or payback

requirements in the proposed

regulations.

Proposed § 304.2, which restates

section 673(a) of the Act, identifies the
Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules 37467

program and the purposes for which the

program provides financial assistance.

Proposed § 304.3 would define key

terms used in this part of the

regulations.

The definitions of the terms ‘‘related

services’’ and ‘‘special education’’

would be the same as those used in Part

B of the Act, while the proposed

definition of ‘‘early intervention

services’’ would be the same as that

used in Part C of the Act.

The proposed definition of ‘‘academic

year’’—a full-time course of study taken

for a period totaling at least nine months

or for the equivalent of at least two

semesters, two trimesters, or three

quarters—is based on the standard term

typically used in university settings.

The proposed regulations would

require scholars to work full-time in a

special education, related service, or

early intervention position following

their training in order to ensure that

scholarship recipients focus on

providing services to children with

disabilities during the period in which

they are fulfilling their service

obligation. The term ‘‘full-time’’ would

mean a full-time equivalent position as

defined by the individual’s employer or

by the agencies served by the

individual. The definition is intended to

recognize the wide variety of special

education, related service, or early

intervention settings in which scholars

might work subsequent to their training.

In some instances, it should be

straightforward to determine whether an

individual works for one employer (e.g.,

a school or school district) in a full-time

equivalent position or works part-time

for multiple employers and the

proportion to a full-time equivalent for

each position add up to one full timeequivalent job. In other instances,

particularly when a self-employed

individual provides related services to

children with disabilities under Part B,

it may be more difficult to determine

whether the individual works on a fulltime basis. In that case, full-time

equivalency would be determined by

the school district or agency with which

the individual is associated to provide

Part B or Part C services. Questions as

to whether an individual’s job or jobs

meets the full-time equivalent

requirement shall be determined by the

grantee institution from which the

individual received his or her

scholarship. Nonetheless, the Secretary

is particularly interested in public

comment on the requirement that IDEA

scholars provide special education,

related services, or early intervention

services on a full-time basis and seeks

suggestions as to how full-time

equivalency should be measured.

The proposed definition of

‘‘scholarship’’ is based on the definition

of that term used in other Department of

Education programs, and would include

all disbursements or credits for tuition,

fees, student stipends, and books, and

for travel in conjunction with training

assignments.

It should be noted that the term

‘‘scholarship’’ does not include funding

to support assistantships for graduate

students at institutions of higher

education (IHE). Because funding for

graduate assistants is conditioned on the

individual performing work for the IHE,

the service obligation in the proposed

regulations does not apply to that type

of financial support. Otherwise, the

graduate assistants would be required to

perform dual service obligations: work

for the IHE during training and work in

the special education field after training.

The Secretary believes that financial

support to students enrolled in IDEA

personnel training projects must be used

primarily for scholarship recipients who

will be subject to the service obligation

under the Act. Thus, in order to

maximize funds available for scholars

who must work in the special

education, related service, or early

intervention field, funding for graduate

assistants is not considered

‘‘scholarship’’ assistance. IHE grantees

that choose to use IDEA funds to pay

graduate assistants to assist in

facilitating or administering projects

must classify those funds as personnel

costs in their grant applications rather

than as ‘‘scholarship’’ or ‘‘student

support.’’

Subpart B—What Conditions Must Be

Met by the Grantee?

Section 304.20 reflects the Secretary’s

intention to announce for each

personnel training grant competition a

specific percentage, up to 75 percent, of

a grantee’s total award that must be used

to support scholarships. In interpreting

the IDEA Amendments of 1997, the

Secretary believes that Congress

intended that a large portion of IDEA

personnel training funds be used to

support scholarships in order to ensure

that a greater number of qualified

individuals will serve children with

disabilities under Parts B and C of the

Act. The Secretary shall determine the

appropriate percentage of grant funds

that must be set-aside for scholarships

based on the type of projects that will

be funded under a given grant

competition and on the Secretary’s

interest in maximizing the number of

scholars who will subsequently work in

special education, related service, or

early intervention jobs. The proposed

provision would allow the Secretary to

award grants that use less than the

published percentage to pay for

scholarships in light of the unique

nature of a particular project. For

example, a project in which IDEA funds

support only university training

expenses, while an additional funding

source finances student stipends, may

be exempted from the published

percentage. The Secretary notes,

however, that because financial support

for graduate assistants is not considered

scholarship assistance (see previous

discussion), such costs may not be paid

from the minimum percentage of grant

funds that must be used to support

scholarships.

Proposed § 304.21 stipulates the types

of costs that would be allowable under

program grants. In short, project funds

may be used to support costs that are

allowable under 34 CFR 75.530 through

75.562 of the Education Department

General Administrative Regulations

(EDGAR) and to support scholarships

(i.e., tuition, fees, student stipends, and

books, and travel in conjunction with

training assignments).

Proposed § 304.22 identifies

requirements that grantees must meet in

disbursing scholarships. Proposed

paragraph (a) would require grantees to

ensure that scholarship recipients

satisfy certain citizenship or residency

requirements. Proposed paragraph (b)

would require grantees to limit the

individual’s scholarship assistance to

the amount by which the cost of

attendance at the institution exceeds the

amount of any grant assistance the

individual receives under Title IV of the

Higher Education Act. Proposed

paragraph (c) would limit scholarship

assistance to an individual’s cost of

attendance for no more than four

academic years total, with exceptions

for extensions that are consistent with

accommodations provided by the

grantee under the Americans with

Disabilities Act or Section 504 of the

Rehabilitation Act of 1973.

Proposed § 304.23 lists the assurances

that must be provided by a grantee

intending to provide scholarships.

Under proposed paragraph (a), grantees

would be required to enter into a

written agreement with each scholar

who receives a scholarship through an

IDEA-supported personnel training

project. That agreement would specify

the terms and conditions applicable to

the scholarship, including the

individual’s service obligation and

responsibility to pay back the

scholarship if the individual fails to

satisfy that obligation.

Proposed paragraph (b) would

identify the service obligation

requirements as they apply to
37468 Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules

scholarship recipients under IDEA

personnel training grants. Specifically,

the proposed provision, which is based

on the service obligation requirements

stated in section 673(h) of the Act,

would require that any individual who

receives a scholarship from a training

project that prepares personnel to serve

children with low- or high-incidence

disabilities (section 673(b) and (e) of the

Act) or, in appropriate instances as

determined by the Secretary, from a

training project of national significance

(section 673(d) of the Act) shall

subsequently maintain employment: (1)

By providing special education and

related services to children with

disabilities or early intervention

services to infants and toddlers, and

their families; (2) on a full-time basis;

and (3) for a period of at least two years

for every year for which assistance was

received. The service obligation would

apply beginning after the recipient

completes his or her training and would

need to be completed within the

number of years of required service (2

years per year of assistance) plus an

additional three years. For example, a

scholar who received two academic

years of scholarship support would have

to perform four years of service within

seven years from the time the scholar’s

training ended.

The Secretary has clarified in the

proposed regulations that scholars may

fulfill their service obligation by

providing early intervention services

under Part C of the Act. Although

section 673(h) of the Act states that

individuals must ‘‘provide special

education and related services to

children with disabilities’’, IDEA clearly

authorizes personnel training projects to

prepare personnel to provide early

intervention services to infants and

toddlers with disabilities, and their

families. The Secretary believes

Congress intended to apply the service

obligation and payback requirements to

those who receive scholarships from

early intervention personnel training

projects and that early intervention

scholars must be permitted to fulfill

their service obligation by working in

the field in which they have been

trained.

The requirements in proposed

paragraph (b)(2) are particularly

important to determining whether a

former scholar’s job would satisfy the

service obligation requirements in the

proposed regulations. That provision

would require scholars to fulfill their

service obligation by working in a

position or positions ‘‘in which a

majority of the persons to whom the

individual provides services are

receiving from the individual special

education and related services as

defined in Part B of the Act or early

intervention as defined in Part C of the

Act.’’ In other words, a majority of a

teacher’s students, or a majority of a

service provider’s caseload, must be

children or infants and toddlers with

disabilities. Moreover, the former

scholar must actually be providing

special education, related services, or

early intervention services to those

individuals. The Secretary considers

this requirement essential in order to

ensure that IDEA scholarship monies

are used to alleviate shortages of

qualified special education, related

service, or early intervention personnel.

The Secretary is concerned that without

this requirement scholars could

potentially meet the service obligation

without addressing the needs of

children with disabilities in any

measurable way. For example, serving

as a regular education teacher in a class

with a sole disabled student, the

Secretary believes, is not the type of

placement envisioned under section

673(h) of the statute. An IDEAsupported scholar is free to choose such

a profession, but would be required to

pay back to the Department the amount

of scholarship assistance received. On

the other hand, an individual who

teaches regular and special education

classes, and a majority of the teacher’s

students are receiving special education

services from the teacher, would satisfy

the proposed service obligation

requirement. Similarly, a speechlanguage pathologist who serves both

children and adults with disabilities

would satisfy the service obligation

provided a majority of the provider’s

caseload are special education students

under Part B or infants and toddlers

with disabilities under Part C.

Because scholars who enter

leadership positions in special

education do not typically serve a

classroom or caseload of students,

proposed paragraph (b)(3) would apply

a somewhat different standard to the

service obligation for those who receive

scholarships from leadership training

projects (section 673(c) of the Act). Such

scholars would be required to work fulltime, for a period of at least two years

for each year of assistance, in a position

(or positions) in which a majority of the

scholar’s time is expended on work

related to his or her training (i.e., special

education, related service, or early

intervention leadership).

Determinations as to whether a former

scholar in a leadership position meets

this time requirement, or whether any

scholar meets applicable service

requirements, would be made by the

grantee institution.

Proposed § 304.23(b)(4) would clarify

that the service obligation requirements

as applied to part-time scholars will be

based on the accumulated academic

years of training for which the

scholarship is received. As an example,

the service obligation for a scholarship

recipient enrolled half-time in a training

project over four years would be based

on two full academic years of training,

meaning that the individual must work

four years (two years of service per year

of assistance) in the special education,

related service, or early intervention

field, or pay back the scholarship.

Proposed section § 304.23(c) through

(f) would respectively identify grantee

assurances related to: scholarship

repayment, the grantee’s standards for

measuring a scholar’s academic

progress, the grantee’s system for

tracking compliance with the service

obligation requirements, and the

grantee’s procedures for notifying

scholars in writing of their service

obligation upon their exit from the

training project. A grantee would

provide assurances to the Secretary that

it has established policies or procedures

to address each of these requirements,

and the remaining requirements in

§ 304.23, prior to receiving a training

grant under IDEA.

Proposed § 304.23(g) and (h) would

identify the requirements governing

maintenance and submission of

information related to each scholarship

recipient. Examples include letter form,

grantee-developed forms, electronic

communications, and other appropriate

forms that enable grantees to monitor

compliance of scholars with the

proposed regulations.

Proposed § 304.23(i) would require

grantees to notify the Secretary at the

time an individual has failed to fulfill or

has chosen not to fulfill the applicable

service obligation within the time

period specified under paragraph

(b)(1)(iii) or (b)(3)(iii) so that the

Secretary may initiate repayment

procedures.

The Secretary emphasizes that both

the Act and the proposed regulations

hold grantee institutions responsible for

ensuring that scholarship recipients

satisfy their service requirements.

Accordingly, the requirements of

§ 304.23 are those that the Secretary

considers necessary for grantees to

monitor the compliance of individual

scholars with their statutory and

regulatory obligations.
Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules 37469

Subpart C—What Conditions Must Be

Met by the Scholar?

Proposed § 304.30 would specify the

requirements that a scholar must meet

in order to receive a scholarship under

the program. Specifically, scholars

must: be enrolled in a course of study

leading to a degree, certificate,

endorsement, or license related to

special education, related services, or

early intervention services (§ 304.30(a));

enter into with the grantee a written

agreement setting forth the service

obligation requirements (§ 304.30(b));

receive the applicable training at the

educational institution or agency

designated in the scholarship

(§ 304.30(c)); not accept educational

allowances from any other entity if that

allowance conflicts with the

individual’s obligations under the

program (§ 304.30(d)); maintain

satisfactory progress toward the relevant

degree, certificate, endorsement, or

license (§ 304.30(e)); and provide any

information that the grantee needs in

order to track the scholar’s progress in

meeting the service obligation

(§ 304.30(f)).

Proposed § 304.31 would identify the

circumstances under which a scholar,

who has yet to complete the service

obligation, may receive a deferral or

exemption to the repayment

requirement.

If a former scholar fails to satisfy the

applicable service obligation, or fails to

obtain an authorized deferral or

exception, the scholar must repay the

scholarship to the Secretary in

accordance with requirements in

proposed § 304.32. Proposed paragraph

(a) of this section would require that the

repayment amount be proportional to

the service obligation that the scholar

has failed to complete. For example, if

a scholar receives two academic years of

scholarship assistance, teaches special

education for two years (rather than the

requisite four), then stops working or

changes careers (in a field unrelated to

special education, related service, or

early intervention), the individual

would be required to pay back one-half

of the scholarship assistance received.

Proposed § 304.32(b) through (d)

would specify the requirements

governing the accrual of interest and

assessment of costs that would be

included as part of the individual’s

payback obligation. Proposed

§ 304.32(e) would list the various points

at which a scholar enters repayment

status.

Finally, proposed § 304.32(f) would

authorize the Secretary to establish a

repayment schedule that a scholar in

repayment status must follow.

Executive Order 12866

1. Potential Costs and Benefits

These proposed regulations have been

reviewed in accordance with Executive

Order 12866. Under the terms of the

order the Secretary has assessed the

potential costs and benefits of this

regulatory action.

The potential costs associated with

the proposed regulations are those

resulting from statutory requirements

and those determined by the Secretary

as necessary for administering this

program effectively and efficiently.

Burdens specifically associated with

information collection requirements are

identified and explained elsewhere in

this preamble under the heading

Paperwork Reduction Act of 1995.

In assessing the potential costs and

benefits—both quantitative and

qualitative—of these proposed

regulations, the Secretary has

determined that the benefits of the

proposed regulations justify the costs.

To assist the Department in

complying with the specific

requirements of Executive Order 12866,

the Secretary invites comment on

whether there may be further

opportunities to reduce any potential

costs or increase potential benefits

resulting from these proposed

regulations without impeding the

effective and efficient administration of

the program.

Summary of Potential Costs and

Benefits

The following is an analysis of the

costs and benefits of the proposed

regulations that are intended to

implement the statutory changes made

by the IDEA Amendments of 1997.

Based on this analysis, the Secretary has

concluded that the proposed regulations

do not impose significant costs to

grantees under this program. An

analysis of the specific provisions

follows:

Proposed § 304.1 describes the

purposes of the regulations. The

regulations reflect the essential purpose

of the statute, which is to ensure that

individuals who receive scholarship

assistance from projects funded under

the Personnel Preparation to Improve

Services and Results for Children with

Disabilities Program complete a service

obligation, or repay all or part of the

costs of such assistance. Any and all

benefits and costs associated with this

statutory requirement or the proposed

regulations flow from this basic

requirement. The primary beneficiaries

of this requirement would be children

with disabilities and their families. In

order for the Federal government to

justify the expenditure of public funds

under this program, certain procedures

and documentation are necessary to

ensure that goals of the program are

achieved. Since the primary goal of this

program is to train personnel to provide

special education, early intervention,

and related services to children with

disabilities, Congress has determined

that individuals who benefit from

financial assistance under this program

should return the benefits of that

assistance in their field of training. The

primary benefit of these regulations is to

establish a process to implement this

requirement.

The cost of this requirement will be

borne by the Federal government, by

grantees who administer scholarship

programs, and by individuals who

receive scholarships from those

grantees.

The costs to grantees will be in

establishing written agreements with

scholars before awarding scholarships,

establishing and maintaining

information systems for tracking the

academic progress of scholars during

training and tracking the progress of

scholars in meeting their service

obligations following training, and in

reporting to the Secretary when a

scholar fails to fulfill the service

obligation.

The costs to individual scholarship

recipients will be in satisfying the

service obligation following training,

providing information to the grantee

until completion of the service

obligation, and in repaying scholarship

assistance if the scholar fails to fulfill

the service obligation.

Specific estimates of the costs

associated with the regulations affecting

each of these parties is provided below.

One person hour is assumed to cost

$15.00 on average.

Proposed § 304.2 identifies the

program and the purposes for which the

program provides financial assistance

and has no costs associated with it.

Proposed § 304.3 provides definitions

of key terms and has no costs associated

with it.

Proposed § 304.20 provides

information about how the Secretary

will set parameters on the proportion of

grant funds that must be used for

scholarship assistance. Proposed

§ 304.21 identifies allowable costs under

grants. No particular benefits or costs

are associated with these provisions.

Proposed § 304.22 includes

requirements that grantees must meet in

disbursing scholarships, including

determining the status of citizenship

and eligibility of a scholar for Federal

assistance. The regulations would

specify citizenship or resident criteria
37470 Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules

for receiving scholarship assistance. An

estimated 1,000 person-hours per year

would be required, at an estimated cost

of $15,000 per year for all grantees.

Proposed § 304.23 includes

assurances that must be provided by a

grantee that intends to provide

scholarships. The scholar and the

grantee benefit from this provision

which ensures that each has a clear

understanding of each party’s

responsibilities prior to the awarding of

a scholarship. An estimated 7,500

person-hours per year would be

required, at an estimated cost of

$112,500 per year for all grantees.

Proposed § 304.23(b)(3) includes

requirements for fulfilling the service

obligation as it relates to individuals

trained under section 673(c) of the Act,

leadership training. No additional costs

are associated with this provision.

Proposed § 304.23(b)(4) clarifies that

the service obligation requirement as

applied to a part-time scholar will be

based on the accumulated academic

years of training for which the

scholarship is received. This provision

does not impose costs on grantees or

scholars.

Proposed § 304.23(c) through (f)

include provisions relating to

repayment of all or part of any

scholarship received in the event that

the service obligation is not fulfilled.

The Federal agency must collect

repayment of scholarship funds from a

scholar who fails to meet the service

obligation. Grantees must establish

policies and procedures, including a

tracking system, to determine the

compliance of scholars with the terms of

the agreement the scholars entered with

the grantee. This one-time cost will vary

considerably depending on existing data

systems at grantee institutions. An

estimated 12,500 person-hours per year

would be required, at an estimated cost

of $187,500 per year for all grantees.

Grantees must establish policies and

procedures for receiving written exit

certification from scholars that

identifies, among other things, the

number of years the scholar needs to

work to fulfill the service obligation. An

estimated 10,000 person-hours per year

would be required, at an estimated cost

of $150,000 per year for all grantees.

Proposed § 304.23(g) and (h) require

the grantee to provide necessary

information on a scholar, upon request

of the Secretary, and to maintain such

information for a period of time equal to

the time required to fulfill the service

obligation. An estimated 100,000

person-hours per year would be

required, at an estimated cost of

$1,500,000 per year for all grantees.

Under § 304.23(i), the grantee must

inform the Secretary if a scholar fails to

fulfill the service obligation. Starting in

the fourth or fifth year of the program,

an estimated 1,500 person-hours per

year would be required for an

approximation of 75 cases per year, at

an estimated cost of $22,500 in staff

time and correspondence for all

grantees.

Proposed § 304.30(a) through (f)

require that a scholar: be enrolled in a

course of study leading to a degree,

certificate, endorsement, or license

related to special education, related

services, or early intervention services;

enter into a written agreement with the

grantee before starting training; and be

trained at the educational institution or

agency designated in the scholarship.

These decisions are made by scholars in

advance of accepting scholarship

assistance and are conditions for

receiving such assistance. Therefore no

costs are associated with the

requirements under this provision.

Proposed § 304.31 would provide

procedures whereby a scholar could

request a deferral or exception to

performance of the service obligation or

repayment. The costs associated with

this requirement would be negligible.

Proposed § 304.32(a) through (d)

delineate the monetary payback

provisions that would apply if a scholar

failed to meet the terms and conditions

of a scholarship agreement or to obtain

a deferral or an exception to

performance or repayment. There are no

additional costs associated with these

provisions.

Proposed § 304.32(e) specifies when a

scholar enters repayment status.

Proposed § 304.32(f) requires the scholar

to make payments to the Secretary that

cover principal, interest, and collection

costs according to a schedule

established by the Secretary. There are

no additional costs associated with

these provisions.

2. Clarity of the Regulations

Executive Order 12866 requires each

agency to write regulations that are easy

to understand.

The Secretary invites comments on

how to make these proposed regulations

easier to understand, including answers

to questions such as the following: (1)

Are the requirements in the proposed

regulations clearly stated? (2) Do the

proposed regulations contain technical

terms or other wording that interferes

with their clarity? (3) Does the format of

the proposed regulations (grouping and

order of sections, use of headings,

paragraphing, etc.) aid or reduce their

clarity? Would the proposed regulations

be easier to understand if they were

divided into more (but shorter) sections?

(A ‘‘section’’ is preceded by the symbol

‘‘§ ’’ and a numbered heading; for

example, § 304.23 What assurances

must be provided by a grantee that

intends to provide scholarships? (4) Is

the description of the proposed

regulations in the SUPPLEMENTARY

INFORMATION section of this preamble

helpful in understanding the proposed

regulations? How could this description

be more helpful in making the proposed

regulations easier to understand? (5)

What else could the Department do to

make the proposed regulations easier to

understand?

A copy of any comments that concern

how the Department could make these

proposed regulations easier to

understand should be sent to Stanley M.

Cohen, Regulations Quality Officer, U.S.

Department of Education, 600

Independence Avenue, SW. (room 5121,

FB–10B), Washington, DC 20202–2241.

Regulatory Flexibility Act Certification

The Secretary certifies that these

regulations would not have a significant

economic impact on a substantial

number of small entities. The entities

that would be affected by these

proposed regulations are institutions of

higher education that participate in

programs under Part D of IDEA. These

institutions are defined as ‘‘small

entities,’’ according to the U.S. Small

Business Administration Size

Standards, if they are for-profit or

nonprofit institutions with total annual

revenue below $5,000,000 or if they are

institutions controlled by governmental

entities with populations below 50,000.

These proposed regulations impose

minimal requirements to implement the

statutory provisions and would not have

a significant economic impact on the

small entities affected.

Paperwork Reduction Act of 1995

Sections 304.22, 304.23, 304.30,

304.31, and 304.32 contain information

collection requirements. As required by

the Paperwork Reduction Act of 1995

(44 U.S.C. 3507(d)), the Department of

Education has submitted a copy of these

sections to the Office of Management

and Budget (OMB) for its review. The

Secretary notes that each grantee has the

discretion to determine the method(s)

by which it will collect and maintain

information.

Collection of Information: Special

Education—Personnel Preparation To

Improve Services and Results for

Children With Disabilities

Annual reporting and record keeping

burden for this collection of information

is estimated to average 285 hours per
Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules 37471

year per grantee, or 142,500 hours for

500 grantees. The burden for scholars is

approximately 1.3 hours per year for

each scholar, or a total of 10,000 hours

for a projected 7,500 scholars per year.

These estimates include the time for

reviewing instructions, searching

existing data sources, gathering and

maintaining the data needed, and

completing and reviewing the various

collections of information. Thus, the

total annual reporting and record

keeping burden for this collection at the

full operation of the program is

estimated to be 157,500 hours.

Organizations and individuals

desiring to submit comments on the

information collection requirements

should direct them to the Office of

Information and Regulatory Affairs,

OMB, room 10235, New Executive

Office Building, Washington, DC 20503;

Attention: Desk Officer for U.S.

Department of Education.

The Department considers comments

by the public on this proposed

collection of information in—

• Evaluating whether the proposed

collection of information is necessary

for the proper performance of the

functions of the Department, including

whether the information will have

practical use;

• Evaluating the accuracy of the

Department’s estimate of the burden of

the proposed collections of information,

including the validity of the

methodology and assumptions used;

• Enhancing the quality, usefulness,

and clarity of the information to be

collected; and

• Minimizing the burden of the

collection of information on those who

are to respond, including through the

use of appropriate automated,

electronic, mechanical, or other

technological collection techniques or

other forms of information technology;

e.g., permitting electronic submission of

responses.

OMB is required to make a decision

concerning the collections of

information contained in these

proposed regulations between 30 and 60

days after publication of this document

in the Federal Register. Therefore, a

comment to OMB is best assured of

having its full effect if OMB receives it

within 30 days of publication. This does

not affect the deadline for the public to

comment to the Department on the

proposed regulations.

Intergovernmental Review

This program is subject to the

requirements of Executive Order 12372

and the regulations in 34 CFR part 79.

The objective of the Executive order is

to foster an intergovernmental

partnership and a strengthened

federalism by relying on processes

developed by State and local

governments for coordination and

review of proposed Federal financial

assistance.

In accordance with the order, this

document is intended to provide early

notification of the Department’s specific

plans and actions for this program.

Assessment of Educational Impact

The Secretary particularly requests

comments on whether the proposed

regulations in this document would

require transmission of information that

is being gathered by or is available from

any other agency or authority of the

United States.

Electronic Access to This Document

Anyone may view this document, as

well as all other Department of

Education documents published in the

Federal Register, in text or portable

document format (pdf) on the World

Wide Web at either of the following

sites:

http://ocfo.ed.gov/fedreg.htm

http://www.ed.gov/news.html

To use the pdf you must have the Adobe

Acrobat Reader Program with Search,

which is available free at either of the

previous sites. If you have questions

about using the pdf, call the U.S.

Government Printing Office at (202)

512–1530 or, toll free at 1–888–293–

6498.

Anyone may also view these

documents in text copy only on an

electronic bulletin board of the

Department. Telephone: (202) 219–1511

or, toll free, 1–800–222–4922. The

documents are located under Option

G—Files/Announcements, Bulletins and

Press Releases.

Note: The official version of this document

is the document published in the Federal

Register.

List of Subjects in 34 CFR Part 304

Grant programs—children with

disabilities, special education,

Personnel preparation, Reporting and

record keeping requirements.

Dated: June 24, 1998.

Judith E. Heumann,

Assistant Secretary for Special Education and

Rehabilitative Services.

(Catalog of Federal Domestic Assistance

Number 84.325, Special Education—

Personnel Preparation to Improve Services

and Results for Children with Disabilities)

The Secretary proposes to amend title

34 of the Code of Federal Regulations by

revising Part 304 to read as follows:

PART 304—SPECIAL EDUCATION—

PERSONNEL PREPARATION TO

IMPROVE SERVICES AND RESULTS

FOR CHILDREN WITH DISABILITIES

Subpart A—General

Sec.

304.1 Purpose.

304.2 What is the Special Education—

Personnel Preparation to Improve

Services and Results for Children with

Disabilities Program?

304.3 What regulations apply to this part?

304.4 What definitions apply?

Subpart B—What Conditions Must Be Met

by the Grantee?

304.20 What are the requirements for

directing grant funds?

304.21 What are allowable costs?

304.22 What are the requirements for

grantees in disbursing scholarships?

304.23 What assurances must be provided

by a grantee that intends to provide

scholarships?

Subpart C—What Conditions Must Be Met

by the Scholar?

304.30 What are the requirements for

scholars?

304.31 What are the requirements for

obtaining a deferral or exception to

performance or repayment under an

agreement?

304.32 What are the consequences of a

scholar’s failure to meet the terms and

conditions of a scholarship agreement?

Authority: (20 U.S.C. 1473).

Subpart A—General

§ 304.1 Purpose.

Individuals who receive scholarship

assistance from projects funded under

the Special Education—Personnel

Preparation to Improve Services and

Results for Children with Disabilities

Program are required to complete a

service obligation, or repay all or part of

the costs of such assistance, in

accordance with section 673(h) of the

Individuals with Disabilities Education

Act and the regulations of this part.

(Authority: 20 U.S.C. 1473(h))

§ 304.2 What is the Special Education—

Personnel Preparation to Improve Services

and Results for Children With Disabilities

Program?

The Special Education—Personnel

Preparation to Improve Services and

Results for Children with Disabilities

Program (program) provides financial

assistance under section 673 of the Act

to—

(a) Help address State-identified

needs for qualified personnel in special

education, related services, early

intervention, and regular education, to

work with children with disabilities;

and

(b) Ensure that those personnel have

the skills and knowledge, derived from
37472 Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules

practices that have been determined,

through research and experience, to be

successful, that are needed to serve

those children.

(Authority: 20 U.S.C. 1473(a))

§ 304.3 What definitions apply to this

program?

(a) Definitions in EDGAR. The

following terms used in this part are

defined in 34 CFR 77.1:

Applicant

Award

Department

EDGAR

Grantee

Project

Recipient

Secretary

(b) The following definitions apply to

this program: Academic year means a

full-time course of study—

(1) Taken for a period totaling at least

nine months; or

(2) Taken for the equivalent of at least

two semesters, two trimesters, or three

quarters.

Act means the Individuals with

Disabilities Education Act, 20 U.S.C.

1400 et seq.

Early intervention services means

early intervention services as defined in

section 632(4) of the Act.

Full-time, for purposes of determining

whether an individual is employed fulltime in accordance with § 304.23, means

a full-time equivalent position as

defined by the individual’s employer or

by the agencies served by the

individual.

Payback means monetary repayment

of scholarship assistance in lieu of

completion of a service obligation.

Related services means related

services as defined in section 602(22) of

the Act.

Scholar means an individual who is

pursuing a degree, license,

endorsement, or certification related to

special education, related services, or

early intervention services and who

receives scholarship assistance under

this part.

Scholarship means financial

assistance to a scholar for training under

the program and includes all

disbursements or credits for tuition,

fees, student stipends, and books, and

travel in conjunction with training

assignments.

Service obligation means a scholar’s

employment obligation, as described in

section 673(h) of the Act and § 304.23(b)

of this part.

Special education means special

education as defined in section 602(25)

of the Act.

(Authority: 20 U.S.C. 1473(h))

§ 304.4 What regulations apply to this

program?

The following regulations apply to

this program:

(a) The Education Department General

Administrative Regulations (EDGAR) in

the following part of title 34 of the Code

of Federal Regulations:

(1) Part 74 (Administration of Grants

to Institutions of Higher Education,

Hospitals, and Nonprofit Organizations).

(2) Part 75 (Direct Grant Programs).

(3) Part 77 (Definitions That Apply to

Department Regulations). ′

(4) Part 79 (Intergovernmental Review

of Department of Education Programs

and Activities).

(5) Part 80 (Uniform Administrative

Requirements for Grants and

Cooperative Agreements to State and

Local Governments).

(6) Part 81 (General Education

Provisions Act—Enforcement).

(7) Part 82 (New Restrictions on

Lobbying).

(8) Part 85 (Governmentwide

Debarment and Suspension

(Nonprocurement) and

Governmentwide Requirements for

Drug-Free Workplace (Grants)).

(9) Part 86 (Drug-Free Schools and

Campuses).

(b) The regulations in this part 304.

(Authority: 20 U.S.C. 1473; 20 U.S.C. 3474(a)

Subpart B—What Conditions Must Be

Met by the Grantee?

§ 304.20 What are the requirements for

directing grant funds?

(a) The Secretary shall, as appropriate,

identify in a notice published in the

Federal Register, the percentage (up to

75 percent) of a total award under the

program that must be used to support

scholarships as defined in § 304.3.

(b) The Secretary may award grants

that use less than the percentage

published under paragraph (a) of this

section for scholarships based upon the

unique nature of a project.

(Authority: 20 U.S.C. 1473(h))

§ 304.21 What are allowable costs?

In addition to the allowable costs

established in the Education

Department General Administrative

Regulations in 34 CFR 75.530 through

75.562, the following items are

allowable expenditures by projects

funded under the program:

(a) Tuition and fees.

(b) Student stipends and books.

(c) Travel in conjunction with training

assignments.

(Authority: 20 U.S.C. 1473(h))

§ 304.22 What are the requirements for

grantees in disbursing scholarships?

Before disbursement of scholarship

assistance to an individual, a grantee

shall—

(a) Ensure that the scholar—

(1) Is a citizen or national of the

United States;

(2) Provides evidence from the U.S.

Immigration and Naturalization Service

that he or she—

(i) Is a permanent resident of the

United States; or

(ii) Is in the United States for other

than a temporary purpose with the

intention of becoming a citizen or

permanent resident; or

(3) Has a permanent or lasting—as

distinguished from temporary—

principal, actual dwelling place in fact,

without regard to intent, in the Republic

of the Marshall Islands, the Federated

States of Micronesia, or Palau (during

the period in which those entities are

eligible to receive an award under the

program) or the Commonwealth of the

Northern Mariana Islands.

(b) Limit scholarship assistance to the

amount by which the individual’s cost

of attendance at the institution exceeds

the amount of grant assistance the

scholar is to receive for the same

academic year under Title IV of the

Higher Education Act;

(c) Limit scholarship assistance to the

individual’s cost of attendance at the

institution, consistent with paragraph

(b), for no more than a total of four

academic years, except that the grantee

may provide an extension consistent

with the institution’s accommodations

under the Americans with Disabilities

Act or Section 504 of the Rehabilitation

Act of 1973, if the grantee determines

that an individual has a disability that

seriously affects the completion of the

course of study;

(d) Obtain a Certification of Eligibility

for Federal Assistance from each

scholar, as prescribed in 34 CFR 75.60,

75.61, and 75.62.

(Authority: 20 U.S.C. 1473)

§ 304.23 What assurances must be

provided by a grantee that intends to

provide scholarships?

A grantee that intends to grant

scholarships under the program shall

provide the following assurances before

receiving an award:

(a) Requirement for agreement. Each

scholar who will receive a scholarship

will first enter into a written agreement

with the grantee that contains the terms

and conditions required by this section.

(b) Terms of the agreement. Each

agreement under paragraph (a) of this

section shall contain, at a minimum, the

following provisions:
Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules 37473

(1) Individuals who receive

scholarship assistance from projects

funded under section 673(b) and (e),

and to the extent determined

appropriate by the Secretary, section

673(d), of the Act will subsequently

maintain employment—

(i) In which the individual provides

special education and related services to

children with disabilities or early

intervention services to infants and

toddlers, and their families;

(ii) On a full-time basis; and

(iii) For a period of at least two years

for every year for which assistance was

received, within a period, beginning

after the recipient completes the

training for which the scholarship

assistance was provided, of not more

than the sum of the number of years

required in this paragraph and three

additional years.

(2) In order to meet the requirements

of paragraph (b)(1) of this section, an

individual must be employed in a

position in which a majority of the

persons to whom the individual

provides services are receiving from the

individual special education and related

services as defined in Part B of the Act

or early intervention services as defined

in Part C of the Act.

(3) Individuals who receive

scholarship assistance from a leadership

preparation project funded under

section 673(c) of the Act will

subsequently maintain employment—

(i) In which the individual expends a

majority of his or her time performing

work related to the individual’s

preparation;

(ii) On a full-time basis; and

(iii) For a period of at least two years

for every year for which assistance was

received, within a period, beginning

after the recipient completes the

training for which the scholarship

assistance was awarded, of not more

than the sum of the number of years

required in this paragraph and three

additional years.

(4) The service obligation in this

subsection as applied to a part-time

scholar will be based on the

accumulated academic years of training

for which the scholarship is received.

(c) Repayment. (1) Subject to the

provisions in § 304.31 regarding a

deferral or exception, a scholar who

does not fulfill the requirements in

paragraph (b)(1) or (b)(3) of this section,

as appropriate, shall repay all or part of

any scholarship received, plus interest.

(2) The amount of the scholarship that

has not been retired through eligible

service will constitute a debt owed to

the United States that—

(i) Will be repaid by the scholar in

accordance with § 304.32; and

(ii) May be collected by the Secretary

in accordance with 34 CFR part 30, in

the case of the scholar’s failure to meet

the obligation of § 304.32.

(d) Standards for satisfactory

progress. The grantee shall establish,

notify students of, and apply reasonable

standards for measuring whether a

scholar is maintaining satisfactory

progress in the scholar’s course of study;

(e) Tracking system. The grantee has

established policies and procedures,

including a tracking system, to

determine compliance of scholars with

the terms of the written agreement

developed under this section;

(f) Exit certification. The grantee has

established policies and procedures for

receiving written certification from

scholars at the time of exit from the

program that identifies—

(1) The number of years the scholar

needs to work to satisfy the work

requirements in paragraph (b) of this

section.

(2) The total amount of scholarship

assistance received subject to the workor-repay provision in paragraph (b) of

this section.

(3) The time period, consistent with

paragraphs (b)(1)(iii) or (b)(3)(iii) of this

section, during which the scholar must

satisfy the work requirements in

paragraph (b) of this section.

(4) All other obligations of the scholar

under this section.

(g) Information. The grantee shall

provide, upon request of the Secretary,

information, including records

maintained under paragraphs (e) and (f)

of this section, that is necessary to carry

out the Secretary’s functions under this

part.

(h) Records. The grantee shall

maintain the information under this

section related to a scholar for a period

of time equal to the time required to

fulfill the obligation under paragraph (b)

of this section.

(i) Notification. The grantee shall

inform the Secretary if a scholar fails to

fulfill or chooses not to fulfill the

obligation under paragraph (b)(1) or

(b)(3) of this section.

(Authority: 20 U.S.C. 1473(h))

Subpart C—What Conditions Must be

met by the Scholar?

§ 304.30 What are the requirements for

scholars?

A scholar shall—

(a) Be enrolled in a course of study

leading to a degree, certificate,

endorsement, or license related to

special education, related services, or

early intervention services in order to be

eligible to receive a scholarship under

the program;

(b) Enter into a written agreement

with the grantee that meets the terms

and conditions of § 304.23 of this part

before starting training;

(c) Receive the training at the

educational institution or agency

designated in the scholarship;

(d) Not accept payment of educational

allowances from any other entity if that

allowance conflicts with the scholar’s

obligation under this part; and

(e) Maintain satisfactory progress

toward the degree, certificate,

endorsement, or license as determined

by the grantee.

(f) Provide information necessary for

the grantee to track the scholar’s

progress in meeting the service

obligation under § 304.23(b).

(Authority: 20 U.S.C. 1473(h))

§ 304.31 What are the requirements for

obtaining a deferral or exception to

performance or repayment under an

agreement?

(a) An exception to the repayment

requirement in § 304.23(c) may be

granted, in whole or part, if the

scholar—

(1) Is unable to continue the course of

study or perform the service obligation

because of a disability that is expected

to continue indefinitely; or

(2) Has died.

(b) Deferral of the repayment

requirement in § 304.23(c) may be

granted during the time the scholar—

(1) Is engaging in a full-time course of

study at an institution of higher

education;

(2) Is serving, not in excess of three

years, on active duty as a member of the

armed services of the United States;

(3) Is serving as a volunteer under the

Peace Corps Act;

(4) Is serving as a full-time volunteer

under Title I of the Domestic Volunteer

Service Act of 1973;

(5) Has a disability which prevents

the individual from working, for a

period not to exceed three years; or

(6) Is unable to secure employment as

required by the agreement by reason of

the care provided to a disabled family

member for a period not to exceed 12

months.

(c) Deferrals or exceptions to

performance or repayment may be

provided by grantees based upon

sufficient evidence to substantiate the

grounds for an exception under

paragraph (a) of this section or a deferral

under paragraph (b) of this section.

(Authority: 20 U.S.C. 1473(h))

§ 304.32 What are the consequences of a

scholar’s failure to meet the terms and

conditions of a scholarship agreement?

If a scholar fails to meet the terms and

conditions of a scholarship agreement
37474 Federal Register / Vol. 63, No. 132 / Friday, July 10, 1998 / Proposed Rules

under § 304.23(b) or to obtain a deferral

or an exception as provided in § 304.31,

the scholar shall repay all or part of the

scholarship assistance to the Secretary

as follows:

(a) Amount. The amount of the

scholarship to be repaid is proportional

to the service obligation not completed.

(b) Interest Rate. The Secretary

charges the scholar interest on the

unpaid balance owed in accordance

with 31 U.S.C. 3717.

(c) Interest accrual. (1) Interest on the

unpaid balance accrues from the date

the scholar is determined to have

entered repayment status under

paragraph (e) of this section.

(2) Any accrued interest is capitalized

at the time the scholar’s repayment

schedule is established.

(3) No interest is charged for the

period of time during which repayment

has been deferred under § 304.31.

(d) Collection costs. Under the

authority of 31 U.S.C. 3717, the

Secretary may impose reasonable

collection costs.

(e) Repayment status. A scholar enters

repayment status on the first day of the

first calendar month after the earliest of

the following dates, as applicable:

(1) The date the scholar informs the

grantee that he or she does not plan to

fulfill the service obligation under the

agreement.

(2) Any date when the scholar’s

failure to begin or maintain employment

makes it impossible for that individual

to complete the service obligation

within the number of years required in

§ 304.23(b).

(3) Any date on which the scholar

discontinues enrollment in the course of

study under § 304.30(a).

(f) Amounts and frequency of

payment. The scholar shall make

payments to the Secretary that cover

principal, interest, and collection costs

according to a schedule established by

the Secretary.

(Authority: 20 U.S.C. 1473(h))

[FR Doc. 98–18303 Filed 7–9–98; 8:45 am]

BILLING CODE 4000–01–P